TANZANIA: In its latest biannual report on Tanzania, the World Bank highlighted that it expects growth to come in at 5.1 percent in 2023, up from 4.6 percent in 2022, supported by an improving business climate and the implementation of structural reforms.
According to the report, growth is forecast to average about 5.8 percent over the medium term, as weakening demand, persistent inflationary pressures, and high interest rates prevent a more robust expansion. The World Bank expects a gradual recovery of the current account deficit over the medium term, primarily financed by concessional external borrowing and foreign direct investment.
A key concern for the World Bank is the combination of limited fiscal transparency and low budget execution rates, which they believe can improve over time and is vital for supporting the broader public sector narrative.
